The U.S. dollar was mostly softer Monday vs. the major currencies, as sentiment remains good overall after the European bank stress test results were released on Friday. Price action since the results came out and the lack of euro follow-through buying suggests real doubts remain in the markets, however. The yen is mostly firmer, supporting the view that risk aversion has not yet entirely disappeared, while the Swiss franc is mostly firmer too. Emerging market currencies were firmer, with Hungary recovering along with the rest of the emerging markets despite poor fundamentals. Strong Asia data should help underpin that region, while we think ongoing stresses in Hungary and Romania are likely to highlight poor fundamentals in Eastern Europe. Biggest gainers on the day so far vs. the dollar weree KRW, ZAR, PLN, GBP, and JPY, while the only losers vs. the dollar were NOK, SEK, ILS, and INR. Asian markets were higher on carry over from the U.S. rally Friday, and MSCI Asia was up 0.5% Monday. Japan, China, and New Zealand markets outperformed, while India, Singapore, and Indonesia underperformed and fell on the day. European markets were modestly higher Monday, with Euro Stoxx 50 up 0.1%. The U.S. bond market was mixed but is likely to hang on to recent gains as the U.S. growth outlook remains in question. Japan's bond market was flat as 10-year yields were unchanged, while European bond markets were mixed.